BOSTON (Reuters) -
Sureview Capital, a small hedge fund which received
starting capital from one of the industry's most
powerful investors, Blackstone Group, shut down last
month, people familiar with the matter said on Friday.

The fund was founded by John Wu with seed money from Blackstone
Alternative Asset Management in 2011 and last reported assets of
$427 million on a regulatory filing.

At the end of the first quarter Sureview, which specialized in
picking stocks, listed CBS Corp as its biggest position and said it
owned shares in Yahoo Inc and Facebook Inc, all of which suffered
losses in March and early April. Sureview, based in Greenwich,
Connecticut, did not respond to phone calls seeking comment.

The industry sources requested anonymity because hedge funds are
private.

When it launched, Sureview was viewed as a potential new heavy
hitter in the $2.7 trillion industry, not only because of Wu's
resume, which included working at Kingdon Capital and Tiger
Management before that, but more importantly because of Blackstone's
seal of approval.

Considered one of the industry's savviest investors, Blackstone
invests roughly $55 billion in hedge funds and has raised more than
$2 billion for its two so-called seeding funds, which help get new
fund managers started. Competition for a piece of those assets,
usually distributed in $100 million to $150 million chunks, was
fierce, fund managers familiar with the selection process have said.
Blackstone has seeded fewer than 20 new hedge fund managers.

Industry analysts have said it is generally expected that not every
manager in a seeding fund will mature and that some will shut down.